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How will the National Tariff impact on the Arbuthnott Formula and/or the work of NRAC?

April 26, 2017Arbuthnott Formula impact National NRAC tariff

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How will the National Tariff impact on the Arbuthnott Formula and/or the work of NRAC?

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The national tariff applies only to cross-boundary activity, and the treatment of flows is not covered by the Arbuthnott Formula. These tariffs will be phased in over a number of years to avoid any financial turbulence for Boards. Consideration has been given to using tariff costs in the age-sex cost weights component of the Formula, but it has been decided not to use them at this stage.